(Adds text, updates prices)
By Patturaja Murugaboopathy
Jan 17 (Reuters) - Most Asian currencies slipped on
Wednesday as the dollar rebounded from a three-year low, with
the Philippine peso shedding half a percent on concerns
of widening trade deficit.
The dollar index against a basket of six major currencies
was up 0.2 percent at 90.569 after hitting its lowest
since December 2014 at 90.113.
The peso extended its fall to its lowest in more than a
month on higher dollar buying by corporates on Wednesday.
Data out last week showed the Philippines' trade deficit
rose to a record of $3.78 billion in November, putting the
nation on track for its first annual current account deficit in
15 years.
The Indian rupee jumped more than a quarter
percent on news that the government has cut its additional
market borrowing requirement by 60 percent for the current
fiscal year.
The news sent benchmark 10-year bond yields down by 15 basis
points. Indian bond yields have risen by more than 100 basis
points since June last year on concerns that the government may
overshoot its fiscal deficit target.
The South Korean won was down 0.5 percent on the
day.
Finance Minister Kim Dong-yeon said authorities will leave
foreign exchange rates to market participants but take action if
needed.
The won gained more than 12 percent in 2017, making it the
top performer among Asian currencies against the dollar.
The Thai baht was flat on the day, after having
gained 2 percent this year.
The central bank governor said on Wednesday that the bank
has found "unusual speculation" in the baht from some local
financial institutions, but noted recent strength in the
currency is expected to have only a limited impact on exports.
The Malaysian ringgit climbed on higher oil prices,
before giving up some of its gains as the dollar recovered.
Some analysts said they expect markets to be cautious ahead
of key events such as Germany's Social Democrat (SPD), European
Central bank and Bank of Japan meetings later in the month.
The Cboe Volatility Index, often referred to as Wall
Street's "fear index", jumped to a six-week high on Wednesday.
A higher index reflects dampening risk sentiment which
undermines regional currencies.
However, Khoon Goh, head of Asia research at ANZ Banking
Group, is bullish on the outlook for Asian currencies.
"Normally a rise in volatility tends to be a negative for
Asian currencies, but in the current environment, we are seeing
bigger period of dollar weakness that is more than offsetting
the rise in the VIX," Goh said.
China's yuan was flat after rising earlier in the
day, as the central bank set its firmest midpoint in more than
two years.
The following table shows rates for Asian currencies against
the dollar at 0611 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0611 GMT
Currency Latest bid Previous day Pct Move
Japan yen 110.790 110.44 -0.32
Sing dlr 1.323 1.3207 -0.20
Taiwan dlr 29.543 29.555 +0.04
Korean won 1067.700 1062.7 -0.47
Baht 31.984 31.95 -0.11
Peso 50.740 50.49 -0.49
Rupiah 13347.000 13337 -0.07
Rupee 63.960 64.03 +0.11
Ringgit 3.950 3.954 +0.10
Yuan 6.436 6.4369 +0.02
Change so far in 2018
Currency Latest bid End 2017 Pct Move
Japan yen 110.790 112.67 +1.70
Sing dlr 1.323 1.3373 +1.05
Taiwan dlr 29.543 29.848 +1.03
Korean won 1067.700 1070.50 +0.26
Baht 31.984 32.58 +1.86
Peso 50.740 49.93 -1.60
Rupiah 13347.000 13565 +1.63
Rupee 63.960 63.87 -0.14
Ringgit 3.950 4.0440 +2.38
Yuan 6.436 6.5069 +1.10
(Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by
Subhranshu Sahu)